The Coca-Cola Co., Atlanta, has completed the acquisition of Costa Ltd. from Whitbread PLC. The $4.9 billion transaction follows approval from regulatory authorities in the European Union and China. The acquisition was first announced Aug. 31, 2018.
Costa, which has operations in more than 30 countries, gives The Coca-Cola Co. a significant footprint in the global coffee business, it says. Worldwide, the coffee segment is growing annually 6 percent, the company adds. Costa has a scalable platform across multiple formats and channels, from the existing Costa Express vending system to opportunities to introduce ready-to-drink products.
“We see great opportunities for value creation through the combination of Costa’s capabilities and Coca-Cola’s marketing expertise and global reach,” said James Quincey, chief executive officer of The Coca-Cola Co., in a statement. “Our vision is to use the strong Costa platform to expand our portfolio in the growing coffee category.”
Alison Brittain, Whitbread chief executive, added: “We wish our friends and colleagues at Costa all the very best for their future success. Whitbread acquired Costa 23 years ago, when it had only 39 shops. Costa has grown to become a leading, international coffee brand, and Coca-Cola is the right partner to take Costa to the next stage of expansion.”